Differences between Business Ethics and CSR (Notes by Sachin Education Hub)
| Aspect | Business Ethics
(Sachin Education Hub Notes) |
Corporate Social Responsibility (CSR)
(Sachin Education Hub Notes) |
| Definition | Moral principles and values that guide | A business’s commitment to act ethically and |
| business behavior. | contribute to societal well-being. | |
| Focus | Individual and organizational conduct. | Broader impact on society and the environment. |
| Scope | Internal behavior and decision-making. | External impact on stakeholders and community. |
| Emphasis | Ethical decision-making in business | Beyond ethical behavior, includes social and |
| practices and interactions. | environmental responsibilities. | |
| Nature | Guiding principles and values. | Proactive initiatives for social and environmental |
| (Sachin Education Hub Notes) | sustainability. | |
| Examples | Avoiding conflicts of interest, honest | Philanthropy, environmental sustainability, ethical |
| communication, fair treatment of employees. | supply chain practices. | |
| Compliance | Adherence to legal and regulatory | Voluntary actions that go beyond legal requirements. |
| requirements. | (Notes by Sachin Arora) | |
| Decision-making | Guides individual and organizational | Involves strategic planning and decision-making |
| decisions, often on a case-by-case basis. | aligned with social and environmental impact. | |
| Long-term impact | Establishes a culture of integrity within | Builds corporate reputation, trust, and long-term |
| the organization. | sustainability. | |
| Stakeholder Involvement | Concerned with internal and external | Extends beyond shareholders to include all |
| stakeholders (employees, customers, | stakeholders, including the community, environment, | |
| suppliers, etc.). | and society at large. |
Copyrighted by Sachin Arora
